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In Bertrand Competition with Differentiated Goods, the Demand Curve for Bags

Question 17

Multiple Choice

In Bertrand competition with differentiated goods, the demand curve for bags of Wilson tennis balls is qW = 80 - 4PW + 2PD , and the demand curve for bags of Dunlop tennis balls is qD = 80 - 2PD + PW. The two firms both have zero marginal costs. How many bags of tennis balls does each firm produce?


A) qW = 44; qD = 44
B) qW = 64; qD = 48
C) qW = 16; qD = 24
D) qW = 38; qD = 32

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